Bookmark and Share

Notice: On March 31, it was announced that Statalist is moving from an email list to a forum. The old list will shut down on April 23, and its replacement, statalist.org is already up and running.


[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

st: RE: st: Frontier Cost & Production Models


From   "Clifton Chow" <clifton_chow@post.harvard.edu>
To   statalist@hsphsun2.harvard.edu
Subject   st: RE: st: Frontier Cost & Production Models
Date   Sat, 18 Dec 2010 10:34:25 -0500

Does anyone know what the difference is between the stochastic frontier cost and production models and why if one converges, the other does not?  In my dataset the dependent variable is measured in $ and had an extreme value of $500 (when the mean is $15 and the next highest below that value is $45).  When I ran the frontier model with the extreme value both cost and production models converged in the maximum likelihood estimation, but when I left it out, only the production model converged for all three options (Half normal, Truncated Normal & Exponential), but none of the cost models converged.  Any idea why?

Thanks in advance
PhD Candidate
*
*   For searches and help try:
*   http://www.stata.com/help.cgi?search
*   http://www.stata.com/support/statalist/faq
*   http://www.ats.ucla.edu/stat/stata/


© Copyright 1996–2014 StataCorp LP   |   Terms of use   |   Privacy   |   Contact us   |   Site index